Question

What are the major reasons firms might be leery of new technologies?

High prices

Predicting advances can be tricky

While a low ROI is certainly possible, this is not a major reason to be leery of all new technology

Answer 1

Firms may be leery of new technologies due to high prices, the difficulty in predicting advances, and the potential for a low return on investment.

Step-by-step explanation:

Reasons Firms Might be Leery of New Technologies

• High prices: New technologies can often come with high upfront costs, making it difficult for firms to justify the investment.
• Predicting advances can be tricky: The future of technology is uncertain, and it can be challenging to anticipate how quickly new advancements will occur and if the technology being implemented will become outdated.
• Poor return on investment (ROI): While a low ROI is not a major reason to be leery of all new technology, it is a valid concern for firms. If the technology doesn't generate enough value or improve efficiency, the investment may not be worthwhile.